Building or rebalancing your portfolio and wondering what investments to consider next?
Here’s what leading experts featured on BNN Bloomberg say investors should consider adding and dropping from their portfolios today.
In your opinion, what single investment should investors own right now — and why?
UBER
- Stock is down over concerns about Avs from Waymo and Tesla and others.
- We do believe the AV theme but think it will take longer than anyone suspects.
- And Uber is itself aligning with AV partners around the world.
- Uber is showing excellent growth in its free cash flow, which is attractive to us.
From your perspective, what is one investment investors should consider dropping from their portfolios — and why?
Costco (COST) is a stock to avoid right now. Due to high valuation. But overall it’s a great company.
In your opinion, what single investment should investors own right now — and why?
Global X Equal Weight Canadian Utilities Index ETF (UTIL)
Canadian Utilities is a good place to hide in a volatile market. Investors have been moving from the growth sectors of the market (technology) to some of the cyclicals and have now started to shift to the defensive sectors. So far, investors have not exited out of the stock market, but have started to become more defensive. The Canadian utility sector is attractive due to its high dividends and stable revenue income stream. The level of interest rates is important in valuing utilities. In the current environment of Canadian government 10-year bond yield remaining fairly stable since 2022, utilities provide an attractive alternative to bonds.
From your perspective, what is one investment investors should consider dropping from their portfolios — and why?
Emerging markets strongly outperformed the S&P 500 in January and up until late February. However, with the onset of the US/Israel Iran war the underlying dynamics changed. The US dollar started to increase at a faster rate. In addition, energy prices spiked higher. The combination of a stronger US dollar and higher energy costs are an anathema to the emerging markets. Emerging markets debts arelargely financedin U.S. dollars and rising energy prices also have a larger negative impact. In addition, the two largest companies in the emerging markets ETF (EEM) are Taiwan Semiconductor (TSMC) andSamsumg, which make up almost 20 per cent of the fund. If the closure of the Strait of Hormuz continues for more than a few weeks, high quality helium used to make semiconductor chips could get into a shortage situation and cause huge problems for semiconductor fabricators. Qatar produces and ships almost 80 per cent of the world’shigh qualityhelium used to make semiconductor chips. Helium is necessary for the fabrication of the semiconductors and there is currently no substitute.
